Waiting for Apple’s better Siri? There’s some bad news

Apple's highly anticipated new Siri, slated for release early next year as part of Apple Intelligence, is reportedly facing internal performance concerns, according to industry insider Mark Gurman. This development is critical as competitors like Samsung and Google are significantly ahead in AI capabilities, leading to fears that further delays or underperforming AI could negatively impact future iPhone sales, particularly for the iPhone 17. Apple is reportedly exploring strategic options, including acquiring third-party AI companies like Perplexity AI or collaborating with Google, given its current reliance on OpenAI's ChatGPT and struggles with internal Siri development.

Analysis

Apple's highly anticipated new Siri, slated for early 2025 release as part of Apple Intelligence, is reportedly facing significant internal performance concerns, according to industry insider Mark Gurman. This places Apple at a competitive disadvantage, as rivals like Samsung's Galaxy S25 and Google's Pixel 10 already leverage advanced AI capabilities, including Google's Gemini, outperforming Apple's existing AI features.

The potential for further delays or an underperforming Siri could negatively impact future iPhone sales, particularly for the iPhone 17, and underscores Apple's current reliance on OpenAI's ChatGPT for certain Apple Intelligence functions. Internal attempts to develop a proprietary replacement have been unsuccessful, prompting Apple to consider strategic options such as acquiring third-party AI firms like Perplexity AI or collaborating with Google.

The strongly negative sentiment for AAPL (-0.8) reflects market apprehension regarding Apple's lagging AI strategy and execution. The company's delayed entry into the AI race and ongoing struggles with Siri development pose a critical challenge, demanding a timely and effective resolution to maintain competitive standing and investor confidence.

Key Decisions for Investors

• Monitor Apple's progress on Siri's development and release timeline, as further delays or poor performance could negatively impact iPhone sales and AAPL's stock performance.
• Evaluate the competitive landscape, particularly the advancements of Google's Gemini and other rival AI platforms, to assess Apple's long-term market position in the AI-driven smartphone market.
• Watch for potential M&A activities or strategic partnerships (e.g., with Perplexity AI or Google) that could accelerate Apple's AI capabilities and mitigate current development risks.